You are analyzing the beta of HP and have divided the company into four broad business groups. Currently HP has $4 billion (B) of debt outstanding (assume equally distributed among divisions- $1b each) and subject to 36% corporate tax. Betas and market values for each group are:

Business Group	Market Value(B)	Unlevered Beta
Mainframes	2	1.1
Personal Computers	2	1.5
Software	1	1.7
Printers	3	0.9

If the Treasury bond rate is 7.5% and market return is 13% what cost of equity would you use to value the printer division of HP?

		17.51%
		14.84%
		18.84%
		16.18%
		13.51%